In a recent analysis of mutual fund performance, PL Wealth Management, the wealth management division of Prabhudas Lilladher, revealed that 60.82% of equity mutual funds outperformed their respective benchmarks in December 2024. The study, which evaluated 291 open-ended equity diversified funds, noted a slight sequential decline in the assets under management (AUM) of equity mutual funds, which stood at INR 25,84,851 crore for December, down 0.41% from INR 25,74,205 crore in November 2024, excluding sectoral and thematic funds.
The report highlighted that a total of 177 funds managed to outperform their benchmarks in the month ending December 31, 2024. Among the different categories, Flexi Cap Funds emerged as the top performers, with an impressive 79.49% of schemes exceeding their benchmarks. Following closely were Large Cap Funds and Multi Cap Funds, which saw 71.88% and 71.43% of their schemes outperforming the benchmarks respectively during the same period.
Conversely, Value Contra Dividend Yield Funds lagged behind, with only 36.36% of funds in this category managing to outperform their benchmarks, signaling a challenging environment for investors focused on this strategy.
This performance analysis reflects the dynamic nature of equity markets and the varying success rates among mutual fund categories, offering investors insights into potential opportunities and challenges within the investment landscape.